RIYADH: Electronic payments made up 79 percent of all retail transactions in Saudi Arabia in 2024, up from 70 percent the previous year, according to the Saudi Central Bank, known as SAMA.
The increase marks a key milestone in the Kingdom’s shift toward a cashless economy, aligning with one of the core objectives of the Financial Sector Development Program under Vision 2030.
SAMA reported that the total number of non-cash retail transactions reached 12.6 billion in 2024, up from 10.8 billion in 2023, reflecting the continued growth and adoption of electronic payment systems across the country.
In a statement, the central bank said this progress was the result of strategic efforts carried out in cooperation with the financial sector to advance the payments ecosystem and expand access to secure and innovative digital solutions.
SAMA reaffirmed its commitment to enhancing payment infrastructure and supporting economic activities by fostering a more diversified and modern payment landscape.
Digital push
The broader shift toward e-payments has been reinforced by strong growth in both point-of-sale and e-commerce activity in recent years.
According to SAMA data, the value of POS transactions has grown significantly, increasing by 24.15 percent annually in 2020, 32.45 percent in 2021, and by 8.83 percent in 2024, reaching SR668.18 billion ($178.18 billion).
The surge in 2020 and 2021 reflects the pandemic’s role in accelerating the shift toward contactless and digital payments, as consumers and businesses adapted to safety concerns and movement restrictions.
While growth rates have normalized since then, the upward trend in 2024 suggests that post-pandemic behaviors have largely persisted, reinforcing long-term structural changes in how retail transactions are conducted in the Kingdom.
This rise reflects not only the increasing consumer preference for digital transactions but also the rapid expansion of point-of-sale infrastructure across the Kingdom.
In parallel, e-commerce spending using Mada cards has surged, jumping 278.68 percent annually in 2020 to reach SR38.82 billion. By 2024, that figure climbed to SR197.42 billion, representing a 25.82 percent year-on-year increase. The sustained growth highlights the growing role of online platforms in Saudi Arabia’s retail and services sectors.
Together, these trends underscore the broader momentum behind digital payments in the Kingdom, positioning Saudi Arabia as a leader in fintech innovation and financial transformation in the region.
Source: www.arabnews.com
